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USD/JPY: Buy on pullbacks way to go - 2ndSkies

FXStreet (Bali) - USDJPY has confirmed a massive breakout higher, notes Chris Capre, Founder at 2ndSkies Forex, adding that buy on pullbacks is the way to go for now.

Key Quotes

"Yesterday we commented in our notable mentions how the USDJPY had broken back above the key consolidation between 107.13 - 107.33. This re-taking of the consolidation after dipping below hinted at a bullish move with bulls stepping in on the dips."

"Taking an interesting look at the 5 minute chart, we can see a stair stepping like movement to the USDJPY, which today initially sold off post the FOMC announcement, touching the prior consolidations highs before bouncing higher."

"This 107.35 became a launching pad, which sent the pair +100 pips higher in a matter of a few hours. You can see the very clean price action structure with each resistance level becoming a support where buyers stepped in each time. These are called 'role reversal levels' where the 'role' of the level changes from resistance to support (and vice versa)."

"For now, buyers are completely in control and I'm really only interested in trading with the trend, so will likely buy on pullbacks. Some short term levels to get long are 108.37 (aggressive), and 107.35. Below here, I'd be open to adding onto my position buying at 106.80, and 105.30 as I'm maintaining a bullish bias while above 104.12 on a closing basis."

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